MFs’ exposure to bank stocks soars to record Rs 94,000 crore

Mutual funds ramped up their allocation for bank stocks to a record high of nearly Rs 94,000 crore by June-end, primarily on account of steps taken by the government and RBI to clean up the banking system. Fund managers have been raising their allocation to banking since February. Prior to that, they had trimmed exposure to the sector between November and January due to higher bad loans. The recent focus on clean-up of the Indian banking system by RBI and the government by rightly recognising NPAs (non-performing assets) has helped fund managers raise their allocation for bank stocks, Wealthforce.com founder Siddhant Jain said.